Why this company is the perfect Brexit play...

Why this company is the perfect Brexit play... By Robert Stephens It's three months since the UK voted to leave the EU. In that time we have in place a new Prime Minister, a looser monetary policy and sterling is the weakest it has been versus the US dollar in over a decade. All in all, it's been a dramatic quarter. While the FTSE 100 has risen by over 10% since 23 June, investors are nervous about the future for the UK economy. All of this plays perfectly into the hands of tobacco stocks such as British American Tobacco (LON:BATS). According to the Bank of England, the UK economy is about to flirt with recession. Unemployment is forecast to increase and economic growth is due to flat line for much of 2017. In response, the Monetary Policy Committee has cut interest rates by 25 basis points and will implement further QE. It has also hinted at further stimulus should it prove necessary over the coming months. This plays into the hands of British American Tobacco. It is wholly unsurprising that the company's share price has risen by 15% since the EU referendum. That's because a looser monetary policy will exert downward pressure on the value of sterling. It already trades at £1/$1.30 following the referendum and a fall to $1.20 or lower is on the cards. As British American Tobacco reports in sterling and yet relies on non-UK sales for the vast majority of its top line, a weaker sterling will boost its reported profitability… Click Here To Read The Full Story The Master Investor Market Report The FTSE 100 closed the day at 6,911.49, an increase of 0.09 points. The FTSE 250 fell 66.95 points to finish at 17,920.82. The FTSE All Share dropped 2.41 points to finish at 3,762.73. The FTSE AIM All Share ended the day at 816.26, up by 2.39 points. Opioid drug producer Indivior (INDV) is being sued by thirty five U.S. states and the District of Columbia in a case alleging that they worked to keep generic versions of its products off the market. The company said that it would vigorously defend its position, but shares in Indivior fell sharply this morning before recovering to 313.50p, 3.89% below the opening price. Don't miss our September issue! Click HERE to read. Upstream oil and gas outfit Sound Energy (SOU) has renegotiated the agreement for its purchase of a 50% stake in three onshore gas permits in Morocco. The company said that under the new arrangement, half of any proceeds from the sale of the consideration shares above 50p per share would be paid to Sound Energy. The shares shot up by 17.59% to 89.50p. Nickel miner Asa Resource (ASA) saw its shares surge 18.75% to 1.90p after the company's Zimbabwe-based subsidiary released its results for the first five months of the year. Sales volumes were up by 53% over the same period of 2015. However, average prices per tonne dropped by 22% to $9,412 (£7,199) due to high stocks and continued high production..   Monday's news today Gemfields (GEM) will release final results. Quote of the day "The best measure of a man's honesty isn't his income tax return. It's the zero adjust on his bathroom scale." - Arthur C. Clarke Latest Stories Seeing Machines has 8p target in its sights By Zak Mir It seems somewhat ironic that in a week dominated by Apple's potential takeover of McLaren in order to go further down the road of driverless cars, one of the best performing stocks of the week on the UK market has been Seeing Machines… Click Here To Read The Full Story Why I bought more Billing Services By Evil Knievil Somewhere in Aldershot in a Nissen hut, a door, marked Legal Secretariat, is knocked: "Permission to speak, Sir" "Yes, what is it Atkins?" "It's my pay slip, Sir" "And?" "I only get £10 this month"... Click Here To Read The Full Story Central banks: Another fine mess you've gotten us into By Filipe R Costa The world of central banking continues to delight. This particular niche has delivered the greatest advances in economic knowledge, outputting refined new tools to improve the way our economy works… Click Here To Read The Full Story Hotel Chocolat on course for 300p target By Zak Mir Being something of a chocoholic, and being one of the few people actually prepared to pay £3.85 for a 65% Supermilk bar, the short history of Hotel Chocolat has been a source of much personal interest… Click Here To Read The Full Story ONS data could be masking the full implications of Brexit By Robert Sutherland Smith Investors should not assume we have seen the full implications of the UK decision to go it alone. Like history, the future is another country; they do things differently there. One of the useful things taught in economics, is to distinguish between the 'short term' and the 'long term'… Click Here To Read The Full Story Join the movement on social media: Copyright 2016 Master Investor Ltd, All rights reserved. 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